To address global warming due to climate change in the field of manufacturing, DENSO (1) promotes technological development in production processes; (2) ensures thorough employee participation in energy conservation, from departments that supply energy to those that use it; and (3) utilizes renewable energy. By working proactively to reduce CO₂ in these ways, we aim to halve our energy use by fiscal 2026 (halving CO₂ emissions per unit compared with fiscal 2013), while promoting energy conservation activities with a view to achieving carbon neutrality by fiscal 2036.

(1) Companywide Activities for Carbon-Neutral Monozukuri

Road Map for Carbon-Neutral Monozukuri

The DENSO Global Initiative for Monozukuri Carbon Neutrality is focusing its efforts on the three key themes of promoting energy conservation, verifying energy creation, and procuring renewable energy. With regard to promoting energy conservation, we will continue to carry out straightforward energy-saving activities while forging ahead with the development of energy-saving technologies. Through these measures, we strive to realize even more drastic changes in materials and processes and promote their widespread use throughout the DENSO Group, with a view to achieving complete carbon neutrality in the future.

At DENSO, we are giving the utmost priority toward energy conservation efforts with a view toward achieving carbon neutrality. These efforts are being made under a two-pronged approach of production technology development and frontline improvements through the participation of all employees. It is often said that energy conservation efforts at plants have reached their limit. But, at DENSO, we promote ongoing energy-saving activities based on a clear future vision and well-defined targets. This approach allows us to foster an improvement-oriented mindset that focuses on using successful developmental and other improvements as a motivation for pursuing further improvements.

As part of these efforts, we have implemented a system in which we charge business divisions directly for their energy use and are promoting Just-in-Time (JIT) energy activities where we supply energy only when required in the amount required.

Moreover, with the purpose of promoting capital investments in energy conservation, we introduced an internal carbon pricing scheme in 2021 and have begun utilizing this scheme in investment decision-making. In addition to thoroughly implementing energy-saving measures, we are expanding our solar and other on-site power generation facilities, actively working to replace electricity derived from fossil fuels with that generated from renewable energy sources.

Based on the idea that “energy for production is not fixed infrastructure but another component to be controlled,” DENSO is working to establish a system for the utilization and supply of just the right amount of energy at the necessary time through energy JIT activities.

In fiscal 2010, emissions per unit worsened as a result of the plunge in production we experienced due to the global financial crisis. To address this situation, we have worked to create an energy-saving manufacturing structure that is resilient in the face of variations in production. We now include energy conservation as a basic tenet of our facility design and production activities.

From 2020 to 2022, emissions per unit temporarily worsened due to the decline in production brought about by the COVID-19 pandemic and the semiconductor shortage. However, by the end of fiscal 2023, emissions per unit improved 22% compared with fiscal 2020 before the impact of the COVID-19 pandemic, as a result of strengthening such measures as comprehensive JIT inspections of energy supply divisions and the consolidation and stoppage of idle production lines as well as implementing thorough, organization-wide energy-saving activities that covered everything from energy supply to use. In fiscal 2024, amid the restart of production activities, we promoted Companywide energy-saving initiatives, including streamlining and consolidating production processes and implementing energy loss reduction measures through data analysis employing an environmental management system (EMS), resulting in a 14% improvement in emissions per unit compared with fiscal 2023.

With a view to achieving carbon neutrality in its manufacturing activities, DENSO is systematically introducing measures such as purchasing electricity and gas derived from renewable energy sources, installing solar panels and other private power generation equipment, and utilizing voluntary carbon credits. The Company considers progress made toward achieving targets and economic rationality when implementing such measures.

As of fiscal 2025, we have achieved carbon neutrality at DENSO CORPORATION, all 11 manufacturing sites, Advanced Research and Innovation Center, DENSO FUKUSHIMA CORPORATION, DENSO HOKKAIDO CORPORATION, DENSO IWATE CORPORATION, DENSO KYUSHU CORPORATION, and all of our manufacturing companies in Europe (16 bases), China (13 bases), and Asia (10 bases), excluding their subsidiaries.

We have formulated Companywide guidelines outlining our basic approach to energy generation and renewable energy procurement. Based on these guidelines and global standards, we make decisions on the adoption of solar power generation (company investment and on-site PPA*) and seek to introduce such facilities in a systematic manner.

* Power purchase agreement. Under a PPA, a third party owns the power generation facility and supplies power to end users.

Amid the recent acceleration of the global shift toward decarbonization, we are working to establish technologies for capturing, recycling, storing, and reusing CO₂.
For example, we have commenced verification tests for SOFCs,*¹ which create electricity from hydrogen, and SOECs,*² which produce hydrogen from electricity, by utilizing the heat management and material technologies that we have cultivated in the automotive field. Through these kinds of verification tests, we will pursue the efficiency of fully utilizing green hydrogen energy and the durability of being able to safely use energy systems over long periods of time. By doing so, we will take on the challenges of development aimed at balancing environmental sustainability and economic viability.*³

*¹ SOFCs: Solid oxide fuel cells
*² SOECs: Solid oxide electrolysis cells
*³ This initiative is being supported by the Development of Technologies for Realizing a Hydrogen Society project, sponsored by the New Energy and Industrial Technology Development Organization (NEDO).